Rush Street Interactive Q4 EBITDA hits $11.5m in significant swing from last year’s losses
BetRivers operator shares shoot up 22% in in after-hours trading as firm issues upbeat guidance for the year ahead
Rush Street Interactive (RSI) has reported a 17% year-on-year (YOY) increase in revenue for Q4 2023 to $193.3m, compared to the $165.5m recorded in 2022.
Releasing its latest financial report, the BetRivers and PlaySugarHouse operator confirmed an 82.3% YOY drop in net losses in Q4, which fell to $5.5m in the period compared to $31.1m in 2022.
RSI’s adjusted EBITDA continued its upward trend, which began in Q2, with the firm reporting a $11.5m in earnings, representing a significant swing from Q4 2022’s negative adjusted EBITDA figure of $17.3m.
The firm’s adjusted advertising and promotional expenditure fell on a YOY basis, falling from $63.2m in Q4 2022 to $34.6m in Q4 2023.
RSI’s average monthly active users (MAU) in the USA and Canada rose 7% YOY to 160,000, while MAUs increased 33% in Latin America, including Mexico, to 204,000.
Average revenue per MAU in North America was $345 during the final three months of the year, up 5% YOY, while average revenue per MAU in Latin America, rose by 28% YOY to $42.
Alongside its Q4 results, RSI released its full-year 2023 report, which showed an increase in revenue of 17% YOY to $691.2m.
Net loss fell by more than 50% in 2023, from $134.3m in 2022 to $60.1m for the full-year 2023.
The firm also registered a positive adjusted EBITDA result of $8.2m, rising from a negative adjusted EBITDA of $91.8m in 2022.
The operator noted that revenue from Latin America had increased by 50% for the full-year 2023.
Following the publication of the results, RSI’s share price rose 2.1% at close and 22% to $6.62 in post-close trading on March 7.
On the results, CEO Richard Schwartz, said: “We concluded 2023 with a fourth quarter that produced records in both revenues and adjusted EBITDA. For the year, we grew revenue to $691m on strong customer engagement and retention.
“At the same time, we improved our adjusted EBITDA by $100m compared to the prior year. These results and the ensuing momentum have carried into strong guidance for the new year, reflecting our longstanding customer-centric principles and obsession with developing innovative and differentiated user experiences.”
As well as its financial performance for Q4 2023 and the full-year, RSI issued updated guidance for 2024.
The operator expects revenue for the year to be between $770m and $830m, with adjusted EBITDA for the full year between $35m and $45m.
RSI stated that this guidance is based on the assumption that only operations in live jurisdictions are included and that it continues to operate in markets it is currently live in.
Looking ahead, Schwartz added: “With a substantial cash balance and no debt, our financial wherewithal provides us the luxury of continuing to execute on our long-term strategy and investing appropriately in new markets.
“Our strong launch in Delaware exemplifies our ability to identify and grow new and exciting markets, including the opportunities we are pursuing across the Americas.”